A report from Life University’s Board of Trustees
By Dr. Charles Ribley,
Chairman, Life University Board of Trustees
On Tuesday, Feb. 10, the Chairman of the Board of Trustees and President of Life University addressed staff and students on campus to assure them concerning the future of Life University. This was the first such meeting since the Southern Association of Colleges and Schools (SACS) voted in December 2003 to continue Life’s accredited status for another year giving Life University the time to complete its efforts to address any remaining concerns voiced by the accrediting agency. Dr. Charles Ribley, chairman of the board, told staff and students, “I’m here to answer two questions. If you are a student, will Life University be here this time next year? The answer is ‘Yes.’ If you are an employee, will I still have a place to work next year? The answer is ‘Yes.’”
At this time, the university
is accredited by both the Council on Chiropractic Education and the Southern
Association of Colleges and Schools while on probationary status. The College
of Chiropractic is currently working on the process defined in the settlement
agreement with the Council on Chiropractic Education last year. That process,
as well as the continued accreditation process with SACS, will be completed
in January 2005.
Over the past two years the Board of Trustees and the administration of Life University have worked diligently to ensure the future of Life University and its College of Chiropractic. Finally, with the decision by SACS, the agreement with CCE and the eminent real estate agreement with Southern Polytechnical State University that future is much brighter. Of the remaining concerns voiced by SACS, financial stability is the most important.
During its period of rapid growth and expansion in the mid-1990s the university incurred a $32 million bond indebtedness. The enrollment in the university declined dramatically as a result of the loss of accreditation by the Commission on Accreditation of the Council on Chiropractic Education in June 2002. Just like most small private non-profit educational institution Life is dependent on tuition revenue to fuel the operational budget. To put it in terms all chiropractors can understand, let’s say a chiropractor enters practice in a 600 square foot rented office space seeing 50 patients a week. Over time, the practice patient volume triples and there simply isn’t enough space in the office to comfortably or adequately care for the patients. The chiropractor takes out a loan to build the office of a lifetime with all the most up-to-date equipment, beautiful furniture, and a large parking lot. The patients are thrilled and they refer all their friends. It’s the dream practice of all chiropractors. Although a sizeable amount of debt has been incurred the chiropractor is confident that everything will continue as it is. Then something unforeseen happens that causes a temporary catastrophic change in the practice. Suddenly patient volume has dropped to 50 patients per week in the practice again with a mortgage payment that requires that 150 patient visits per week. Staffing is cut, facility utilization is decreased, and unused equipment is sold. A marketing campaign is mounted, but income does not yet equal expenditure commitment. This is what happened to Life University over the past two years.
SACS requires that educational institutions operate on a balanced budget. There are three ways for Life to balance its budget. One is increased enrollment through increased student recruitment efforts. The Alumni Association at Life has begun a grassroots endeavor hosting career nights all over the country. Dr. Joe Lupo of Michigan, a 1978 graduate of Life Chiropractic College, is leading that movement. In addition, the Board of Trustees has committed to a $3 million capital fundraising campaign. Its completion is scheduled for June 2004. For more information about the student recruitment campaign or donation to the capital fundraising campaign contact the university at (770) 426-2753 or (800) 543-3436.
Finally, the university is committed to decreasing its debt. To that end, the university has entered into an agreement with Southern Polytechnical State University Foundation of intent to sell the real estate that is the campus. Life University will be removed from liability for the $32 million bond debt and will lease back all the classroom facilities on the north side of the campus, including the clinic at one-half the current cost. In addition, Life will have the option after five years to enter into a purchase agreement with SPSU to buy back those facilities at the same price that Southern Polytechnic paid when assuming the bond indebtedness.
The Board of Trustees has chosen these actions because they are fully committed to the students, faculty, administration and the chiropractic community. These actions continue the Lasting Purpose mission that founded and ensures the future of Life University.
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